On 1 January 20X7 Jolie Ltd gained control of Taylor Ltd by acquiring 60% of its shares. All assets and liabilities of Taylor were recorded at their fair values. Below is an extract of financial information of both entities as at 31 December 20X9, the end of the current year:

	Jolie Ltd	Taylor Ltd
Net profit	40,000	20,000
Retained profits (opening)	90,000	60,000
Profit available	130,000	80,000
less Dividend paid	15,000	6,000
Retained profits (ending)	115,000	74,000
Share capital	150,000	70,000
Owners equity	265,000	144,000

Additional information:

• The partial goodwill method is used.
• Taylor sold inventory to Jolie during 20X9 for $18,000. The cost of inventory to Taylor was $10,000. Half of this inventory was still on hand at the year end.
• Jolie sold a vehicle to Taylor on 31 December 20X7 for $17,000. The vehicle originally cost Jolie $40,000 and had zero residual value. Jolie depreciated the vehicle at the rate of 20% p.a. using the straight-line method. The vehicle was 3 years old at the time of the intragroup sale. The vehicles residual value and useful life were not affected by the sale. Taylor depreciates the vehicle also using the straight-line method.
• Taylor provided $8,000 worth of consulting services to Jolie during 20X9. Jolie paid for the services before the year end.
• In 20X8 Jolie recognised $1,000 impairment for its investment in Taylor.

Required:

a) Prepare all the necessary consolidation journal entries at 31 December 20X9.

Note 1) Use the provided journal entry template to enter your answer. 2) Workings/calculations or narrations are NOT required. 3) The template should provide enough space. However, if you find the space is insufficient in the template or encounter a table formatting issue, write your journal entries below the template and ensure labelling DR or CR.

b) Calculate the NCI allocation for the following equity items of Taylor for the year ended 31 December 20X9. Show workings.

	NCI allocations ($)
Net profit
Retained profits (opening)